Lease option/Rent to own

[Trish]

Does anyone have any experience with this? It just sounds too good to be true.
I'm interested in it because we just don't have enough of a down payment for the conventional loans (for a fixed rate).

Any input would be greatly appreciated.

[jjgross]

Originally Posted by Trish

Does anyone have any experience with this? It just sounds too good to be true.
I'm interested in it because we just don't have enough of a down payment for the conventional loans (for a fixed rate).

Any input would be greatly appreciated.

My cuz bought his house on a rent to own and he now owns it.So it's workable.

[Trish]

That's good to hear!
I'm still waiting on a call from this mortgage company that supposedly has this "you pick it, we buy it" deal for lease options.

If there is any way we can get into a house that way, it would be so awesome. *fingers crossed*

[Trish]

Aha......I figured there would be a downside to this.

I have been talking to a mortgage counselor and from he is telling me (at least with his company anyway) if you do the leasing option, you are basically in a "rental agreement" for the first year or two. The mortgage company has a company buy the house for you BUT they add 10% to the price of the home AND the interest rate is about 8.5%. Yikes!

So after you make payments for a couple of years and it comes time to buy it, the price ends up being much higher.

So if it is possible to get a conventional loan.........I'm going to do that.
Wish me luck.......I'm gonna need it.